CAIT opposes 100 per cent FDI in marketplace model of e-commerce

Strongly opposing the decision to allow 100 per cent FDI in market place model of e-commerce,traders body CAIT today said the move will give back door entry to global players in multi-brand retail trading and impact MSMEs.

This decision makes the current government a "U-Turn government" as it has earlier strongly opposed FDI in retail,it said."It is deeply regretted (decision)...It is an irony that Prime Minister Narendra Modi time and again advocating empowerment of small businesses whereas on the other hand regular steps are being taken to disarm the traders from their business activities," Confederation of All India Traders(CAIT) said in a statement.

Allowing FDI in food processing, levying of excise on jewelry and now allowing FDI in e-commerce are the living examples of "U-turn" of the government, it said.

"It is nothing but a back door entry to global retailers which will facilitate them to side step restrictions in multi brand retail since e-commerce has no geographical restrictions," it added.

It said that the traders across the country will strongly oppose this move.Today's decision, it said, will hamper the trade and commerce conducted by not only the traders but even by the MSME sector.

"It will also distort the taxation system since the e-tailers will be registered with taxation department in one state but will be entitled to trade across the country," it added.